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Social learning, copying other's behavior without actual experience, offers a cost-effective means of knowledge acquisition. However, it raises the fundamental question of which individuals have reliable information: successful individuals…
We provide the first asymptotic analysis of the Boston Mechanism under equilibrium play in random markets. We provide two results. First, while 63\% of students receive their first preference under truthful reporting-outperforming any other…
We model the behavioral biases of human decision-making in securing interdependent systems and show that such behavioral decision-making leads to a suboptimal pattern of resource allocation compared to non-behavioral (rational)…
We introduce robust learning equilibrium. The idea of learning equilibrium is that learning algorithms in multi-agent systems should themselves be in equilibrium rather than only lead to equilibrium. That is, learning equilibrium is immune…
Decisions taken in our everyday lives are based on a wide variety of information so it is generally very difficult to assess what are the strategies that guide us. Stock market therefore provides a rich environment to study how people take…
Agents' learning from feedback shapes economic outcomes, and many economic decision-makers today employ learning algorithms to make consequential choices. This note shows that a widely used learning algorithm, $\varepsilon$-Greedy, exhibits…
This paper studies two important signal processing aspects of equilibrium behavior in non-cooperative games arising in social networks, namely, reinforcement learning and detection of equilibrium play. The first part of the paper presents a…
Suppose you run a home exam, where students should report their own scores but can cheat freely. You can, if needed, call a limited number of students to class and verify their actual performance against their reported score. We consider…
Many of the observations we make are biased by our decisions. For instance, the demand of items is impacted by the prices set, and online checkout choices are influenced by the assortments presented. The challenge in decision-making under…
We consider thin incomplete financial markets, where traders with heterogeneous preferences and risk exposures have motive to behave strategically regarding the demand schedules they submit, thereby impacting prices and allocations. We…
Many two-sided matching markets, from labor markets to school choice programs, use a clearinghouse based on the applicant-proposing deferred acceptance algorithm, which is well known to be strategy-proof for the applicants. Nonetheless, a…
In decision-making, individuals often rely on intuition, which can occasionally yield suboptimal outcomes. This study examines the impact of intuitive decision-making on individuals who are confronted with limited position information in…
Machine learning is now ubiquitous in societal decision-making, for example in evaluating job candidates or loan applications, and it is increasingly important to take into account how classified agents will react to the learning…
Machine teaching is an inverse problem of machine learning that aims at steering the student learner towards its target hypothesis, in which the teacher has already known the student's learning parameters. Previous studies on machine…
We study sequential social learning with endogenous information acquisition when agents have a taste for nonconformity. Each agent observes predecessors' actions, chooses whether to acquire a private signal (and its precision), and then…
Motivated by school admissions, this paper studies screening in a population with both advantaged and disadvantaged agents. A school is interested in admitting the most skilled students, but relies on imperfect test scores that reflect both…
Human societies are characterized, besides others, by three constituent features. (A) Options, as for jobs and societal positions, differ with respect to their associated monetary and non-monetary payoffs. (B) Competition leads to reduced…
We study mechanisms for an allocation of goods among agents, where agents have no incentive to lie about their true values (incentive compatible) and for which no agent will seek to exchange outcomes with another (envy-free). Mechanisms…
While enforcing egalitarian social norms is critical for human society, punishing social norm violators often incurs a cost to the self. This cost looms even larger when one can benefit from an unequal distribution of resources (i.e.…
We design and implement lab experiments to evaluate the normative appeal of behavior arising from models of ambiguity-averse preferences. We report two main empirical findings. First, we demonstrate that behavior reflects an incomplete…